Transformation of the EU egg sector

Reasons for the increase in purchase prices

1. The transition to cage-free chicken keeping
One of the main factors contributing to the increase in egg prices is the transition of a number of key producers, including Germany, to cage-free chicken keeping. This process, caused by changes in legislation and public demands for humane treatment of animals, requires significant investment in the modernization of farms. As a result, despite the high profitability, the supply of eggs on the market remains limited.

2. Reduction in production volumes
In some EU countries , there is a decrease in egg production, which also leads to a deficit on the market. This is due to both the transition to new methods of keeping chickens and other factors, such as outbreaks of bird diseases, which can temporarily reduce the number of livestock.

3. Economic factors
Inflation and rising feed prices also affect the cost of eggs. For example, in Poland there is a decrease in feed prices for laying hens, which, despite the positive trend, does not fully compensate for the increase in egg prices. In October 2024 , the purchase price of class M eggs was PLN 49.76 per 100 pieces, down 3.8% year-on-year.

Market analysis and EXPORT trends

According to the report by Credit Agricole analysts, despite high production profitability, the EU egg market remains under pressure from limited supply. From January to September 2024, the value of Polish egg exports decreased by 10.1% year-on-year, due to a decrease in prices from exporters despite an increase in sales volumes.

This decrease in prices may be due to competition on international markets, as well as the need to adapt to new conditions, including changes in legislation and product quality requirements. However, the ratio of prices per 100 eggs to the cost of feed in October 2024 improved to 34.81, indicating a slight improvement in production profitability compared to 34.20 a year earlier.

Prospects and challenges

The transformation of the EU egg sector offers new opportunities, but also poses a number of challenges for producers. Key areas for further development could be:

- Innovation and technology
The introduction of new technologies into production processes can help to increase efficiency and reduce costs. This includes automation of processes, improvement of the welfare of hens and optimisation of feeding.

- Sustainability
The transition to more sustainable production methods that take into account environmental and social aspects will be an important factor in attracting consumers willing to pay more for ethical and quality products.

- Adaptation to changes in demand
Producers need to respond flexibly to changes in consumer preferences and market conditions, which may require changes in product ranges and sales strategies.

In conclusion, the transformation of the egg sector in the EU is a complex and multifaceted process that requires careful analysis and a strategic approach. Successful adaptation to the new conditions will allow producers not only to remain competitive, but also to strengthen their market position.